Thailand’s financial regulators are set to introduce a groundbreaking crypto sandbox program, enabling foreign tourists to convert their digital assets into Thai Baht for local spending. This initiative, a collaborative effort between the Securities and Exchange Commission (SEC) and the Bank of Thailand (BOT), aims to bolster the nation’s vital tourism sector and position Thailand as a leader in digital financial innovation.
The program expands upon a successful pilot in Phuket and seeks to integrate crypto more broadly into the country’s tourism economy, according to reports. Under the new sandbox, visitors will exchange cryptocurrencies through licensed digital asset operators and then utilize the converted Baht via regulated electronic money platforms, such as QR code payments.
The expanded crypto sandbox builds on concepts initially explored by former Prime Minister Thaksin Shinawatra’s Phuket sandbox proposal, which aimed to facilitate Bitcoin and other cryptocurrency payments in popular tourist destinations to drive adoption.
Licensed digital asset exchanges, brokers, and dealers will be eligible to participate in the sandbox for an initial period of up to 18 months, with potential for extension. Operators must meet stringent eligibility criteria, adhere to service limitations, observe spending caps for tourists (฿50,000 per month for small merchants and ฿500,000 for verified merchants), and comply with strict anti-money laundering (AML) regulations.
While the initiative is largely welcomed, the Tourism Council of Thailand (TCT) has urged the government to ensure the entire ecosystem is fully prepared before a widespread launch. Bhummikitti Ruktaengam, TCT’s vice president, noted that many local stakeholders, particularly in Phuket, remain unaware of the ongoing public consultation process.
Money laundering remains a significant concern, especially given the rise of illicit foreign businesses in tourist hotspots. Industry experts emphasize the need for clear regulatory frameworks to prevent crypto exchanges from being exploited for illegal activities. Tourism operators are also seeking clarity on which specific crypto assets will be accepted and the full scope of permitted exchange services.
Thailand’s move aligns with a growing global trend of countries exploring crypto payments for tourists. In May, Bhutan launched a comprehensive system allowing tourists to pay for nearly all aspects of their visit using cryptocurrency, in partnership with Binance Pay and DK Bank. Similarly, Binance Pay has teamed up with French fintech Lyzi to enable cryptocurrency payment options for over 80 businesses along the French Riviera, including major destinations like Cannes, Nice, and Monaco. These systems facilitate instant transaction confirmation for customers and immediate fiat settlements for merchants, offering a glimpse into the future of digital tourism.
As Thailand steps into this new era of crypto-enabled tourism, the success of the sandbox will likely serve as a model for other nations looking to integrate digital assets into their economies.
